The Impact of Information Sharing on the Use of Collateral versus Guarantees
This study exploits contract-level data from Bosnia and Herzegovina to assess the impact of a new credit registry on the use of borrower collateral versus third-party guarantees. Among first-time borrowers, the introduction of mandatory information sharing leads to a shift from collateral to guarant...
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| Format: | Journal Article |
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Published by Oxford University Press on behalf of the World Bank
2021
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| Online Access: | http://hdl.handle.net/10986/36118 |
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okr-10986-361182021-08-17T14:20:52Z The Impact of Information Sharing on the Use of Collateral versus Guarantees De Haas, Ralph Millone, Matteo ACCESS TO FINANCE COLLATERAL GUARANTEES INFORMATION SHARING FINANCIAL INCLUSION BORROWERS This study exploits contract-level data from Bosnia and Herzegovina to assess the impact of a new credit registry on the use of borrower collateral versus third-party guarantees. Among first-time borrowers, the introduction of mandatory information sharing leads to a shift from collateral to guarantees, in particular for riskier borrowers. Among repeat borrowers, both collateral and guarantee requirements decline in proportion to the length of the lending relationship. These results suggest that information sharing can both reduce adverse selection among new borrowers and hold-up problems among repeat borrowers. 2021-08-13T19:52:17Z 2021-08-13T19:52:17Z 2020-02 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/36118 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article Europe and Central Asia Bosnia and Herzegovina |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| topic |
ACCESS TO FINANCE COLLATERAL GUARANTEES INFORMATION SHARING FINANCIAL INCLUSION BORROWERS |
| spellingShingle |
ACCESS TO FINANCE COLLATERAL GUARANTEES INFORMATION SHARING FINANCIAL INCLUSION BORROWERS De Haas, Ralph Millone, Matteo The Impact of Information Sharing on the Use of Collateral versus Guarantees |
| geographic_facet |
Europe and Central Asia Bosnia and Herzegovina |
| description |
This study exploits contract-level data from Bosnia and Herzegovina to assess the impact of a new credit registry on the use of borrower collateral versus third-party guarantees. Among first-time borrowers, the introduction of mandatory information sharing leads to a shift from collateral to guarantees, in particular for riskier borrowers. Among repeat borrowers, both collateral and guarantee requirements decline in proportion to the length of the lending relationship. These results suggest that information sharing can both reduce adverse selection among new borrowers and hold-up problems among repeat borrowers. |
| format |
Journal Article |
| author |
De Haas, Ralph Millone, Matteo |
| author_facet |
De Haas, Ralph Millone, Matteo |
| author_sort |
De Haas, Ralph |
| title |
The Impact of Information Sharing on the Use of Collateral versus Guarantees |
| title_short |
The Impact of Information Sharing on the Use of Collateral versus Guarantees |
| title_full |
The Impact of Information Sharing on the Use of Collateral versus Guarantees |
| title_fullStr |
The Impact of Information Sharing on the Use of Collateral versus Guarantees |
| title_full_unstemmed |
The Impact of Information Sharing on the Use of Collateral versus Guarantees |
| title_sort |
impact of information sharing on the use of collateral versus guarantees |
| publisher |
Published by Oxford University Press on behalf of the World Bank |
| publishDate |
2021 |
| url |
http://hdl.handle.net/10986/36118 |
| _version_ |
1764484508293267456 |